Where are Milton's TIFs?

By COURTNEY LAMDIN | Staff Writer
courtney@miltonindependent.com

The town of Milton has three tax increment financing districts, the most in the state. The Husky and Catamount TIFs are technically separate but were considered one district for the purpose of a tax incentive program through the state.

Milton recently activated its third TIF, the Milton Town Core, last year when the town began the water and sewer expansion in the downtown area.

Husky/Catamount
Original taxed value: $20,989,900
FY 11 taxable value, Husky: $14,571,010
FY 11 taxable value, Catamount: $33,212,500
Total FY 11 value: $47,783,510

Background
Husky moved to North Road in Milton in 1997, occupying 700-plus acres of what was once a farm owned by Joe and Barbara Rowe.

Before settling on this space, the Canadian-based company looked at Essex, St. Albans, So. Burlington, Williston, Barre and Berlin. Husky chose Milton for its proximity to the railroad, Interstate 89, Burlington International Airport and Montreal.

In March 1998, Milton’s Selectboard approved plans for a TIF district, and eight months later, the Vermont Economic Progress Council OK’d Milton’s application.

A TIF district was favorable for Husky’s location because to move here, Husky needed infrastructure like expanded sewer and roadway improvements. The town also looked into growing the Catamount Industrial Park at this time and decided to combine the projects.

Scope
Promises for the Husky TIF were abundant. News of Husky’s coming was so anticipated that The Independent printed a special edition heralding the company’s decision to locate here. The 12-page issue was comprised of five full pages of ads – all from local businesses welcoming the manufacturer to town.

Looking back, one couldn’t fault the excitement: The original TIF application contained plans for multiple expansive projects.

Aside from Husky itself pledging to create more than 1,000 jobs, its TIF district boasted plans to help fund numerous projects, all without raising taxes on residents.

Besides the water treatment plant expansion and sewer lines down Railroad Street and Route 7 to the park – substantial projects that wouldn’t exist otherwise – the Husky TIF planned to generate enough revenue to pay back debt on road improvements, a water tank construction and fire truck purchase. Other projects were never completed.

One of these included a proposed bridge over Lake Arrowhead, connecting the Husky Campus on North Road to Route 7.  Husky elected to pay the estimated $5 million to $8 million cost, but the bridge project went nowhere.

Three other projects – Main Street reconstruction and a sewer main upgrade and survey marker replacement on North Road – also were never done, the first two because of lacking funds. The Main Street project was added to the Town Core TIF financing plan at an estimated $3.3 million cost.

The Husky TIF fell short of projected tax revenue for several reasons. First, the Husky plant didn’t build out as originally planned. The company expected to construct five new buildings, but today, there’s just the original plant.

Down the road to Catamount, there were holdups in the Act 250 permitting process. Though plans for the sewer line were approved in the 1990s, the town faced delays when the environmental advocacy group Conservation Law Foundation raised concerns with the project contributing to sprawl.

The district Act 250 board lifted the majority of CLF’s conditions on the permit in 2011, years after the original TIF district approval. In the meantime, the Greater Burlington Industrial Corporation, which owns the park, held off on recruiting new tenants for the park until the sewer line was built, greatly reducing TIF revenue potential.

“Short of the expectations with Husky, the district has performed well,” Town Manager Brian Palaia said. “It’s generated a tremendous increment. It’s more than repaid the debt service on the wastewater plant and expansion.”

Town Core
Original taxed value: $124,186,860

Milton’s newest TIF is still in its infancy. Approved by VEPC in April 2009, it was activated in 2011 when the town took out its first debt for the water and sewer expansion.

The town core area is generally comprised of land surrounding Route 7’s path through town from Bartlett Road almost up to Lake Arrowhead. It was sited for TIF development because these areas are where mixed uses and high density will likely occur.

As stated in the district application, “Public improvements, such as extensions of municipal water and wastewater services, transportation improvements and the enhancement of alternative modes of transportation, are necessary to stimulate the development and redevelopment of this area to its full potential.”

The hope is to create jobs, provide affordable housing and bring in new business.

Scope
The town core TIF has an expansive list of projects, including the $3 million-plus town core sewer project that voters approved last year.

Bids for the project came in higher than expected, so the town had to amend its plan and take out a few sections. The rest of the project is on this year’s Town Meeting ballot.

Once complete in full, Bombardier Road, portions of Middle Road, Railroad Street, Villemaire Lane and Route 7 and the whole of Centre Drive will have municipal water and sewer. The town says the existing treatment plant has enough capacity to service the development this TIF project will create.

Other projects include:
• Sidewalks on upper Main Street and Bombardier Road
• Reconfiguration of Railroad Street/Middle Road/Route 7 intersection
• Main Street reconstruction
• Lighting project on Main, School, Cherry and River streets and another on Bombardier Road, Middle Road, Route 7 and Centre Drive
• Part of a parallel road to Route 7, often termed the “East-West Road”
• A park and ride facility with restrooms, bike racks and additional parking
• And others for a total cost of $23,766,262.

The town core TIF is estimated to generate $45,788,341 in incremental TIF revenues.

Read more on TIF districts:

Turner on audit: 'Outrageous'
Audit: Town owes $3.4M
What are TIF districts?